Siemens, Bombardier Said in Talks to Combine Rail Units

[Around the Horn]

Some interesting news from Bloomberg, with possible ramifications for the R179 and R211 orders...

 

If this were to go through, CRRC is effectively out of the running for the R211 since their bid was joint with Bombardier...

 

A brief fair use quote:

Siemens AG and Bombardier Inc. are in talks to combine their rail operations, according to people familiar with the matter, potentially creating a business that could better fend off increasing competition from China.

The proposed joint venture, which could be worth at least 10 billion euros ($10.6 billion), would merge the firms’ train-making and signaling activities, said the people, asking not to be identified because the discussions are private. A deal could come by the middle of the year, one of the people said.

 

No final decisions have been made and any combination would require clearance from antitrust authorities and face potential opposition from unions, they said. Representatives for Siemens, which has headquarters in Munich, and Montreal-based Bombardier declined to comment.

 

https://www.bloomberg.com/news/articles/2017-04-11/siemens-bombardier-said-in-talks-to-combine-train-operations

[danielhg121]

Wow the competition is really cooking but Bombardier is still in the running? I thought they were gonna be eliminated on the spot.

 

 

Sent from my iPhone using NYC Transit Forums mobile app

[bobtehpanda]

Some interesting news from Bloomberg, with possible ramifications for the R179 and R211 orders...

 

If this were to go through, CRRC is effectively out of the running for the R211 since their bid was joint with Bombardier...

 

Not really. Competing manufacturers do business together all the time.

 

You also have to consider that it will take more than just a couple of lawyers and a snap of the fingers to merge the two units together.